Baosteel to Expand Partnership with Nippon Steel

Baosteel Group’s chairman Xu Lejiang said on Thursday the firm expands the partnership with Nippon Steel. He said they seek further cooperation for raw steel development, environmental protection, potential joint venture in emerging market and technology along with expansion for Baosteel/NSC/Arcelor Automotive Steel Sheet (BNA). He tries to establish strategic partnership with Nippon Steel by finding new project for common benefit. Mr. Xu held press conference at hotel in Kisarazu, Chiba during visit for 30 years anniversary of partnership with Nippon Steel. He said the partnership entered into new stage and they should develop further cooperation. He said they keep talking for expansion of BNA to meet growing demand for Chinese automobile industry. Mr. Xu said world steel industry faces common issues including raw materials, ocean freight, reduction of carbon dioxide and technical partnership. He said the firm and Nippon Steel will cooperate for the issues. He said they launches joint project for environmental business. Mr. Xu said Baosteel group’s offshore strategy is raw materials procurement, steel products sales, offshore production base and share listing on offshore stock market. The firm launches slab making plant with 5 million tonnes of annual output capacity in Brazil. He said the firm tries to find another opportunity for potential production base in emerging market including Southeast Asia, Africa, Eastern Europe and Pakistan. Mr. Xu said the firm launched 6 years vision to expand the raw steel output to more than 80 million tonnes. He said the firm tries to expand the volume mainly by acquiring Chinese companies while the firm tires to build major steel plant in Zhanjiang.